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Innovation Offshoring:Asia's Emerging Role in Global Innovation Networks

Editor

Listed:
  • Ernst, Dieter
    ()

  • East-West Center
    (East-West Center)

Abstract

Most analysts agree that critical ingredients for economic growth, competitiveness, and welfare in the United States have been policies that encourage strong investment in research and development (R&D) and innovation. In addition, there is a general perception that technological innovation must be based in the United States to remain a pillar of the American economy. Over the past decade, however, the rise of Asia as an important location for "innovation offshoring" has begun to challenge these familiar notions. Based on original research, this report demonstrates that innovation offshoring is driven by profound changes in corporate innovation management as well as by the globalization of markets for technology and knowledge workers. U.S. companies are at the forefront of this trend, but Asian governments and firms are playing an increasingly active role as promoters and new sources of innovation. Innovation offshoring has created a competitive challenge of historic proportions for the United States, requiring the nation to respond with a new national strategy. This report recommends that such a strategy include the following elements: output forecasting techniques ... Improve access to and collection of innovation-related data to inform the national policy debate; Address "home-made" causes of innovation offshoring by sustaining and building upon existing strengths of the U.S. innovation system; Support corporate innovation by (1) providing tax incentives to spur early-state investments in innovation start-ups and (2) reforming the U.S. patent system so it is more accessible to smaller inventors and innovators; and Upgrade the U.S. talent pool of knowledge workers by (1) providing incentives to study science and engineering, (2) encouraging the development of management, interpretive, cross-cultural, and other "soft" capabilities, and (3) encouraging immigration of highly skilled workers.

Suggested Citation

  • Ernst, Dieter & East-West Center (ed.), 2006. "Innovation Offshoring:Asia's Emerging Role in Global Innovation Networks," Economics Study Area Special Reports, East-West Center, Economics Study Area, volume 10, number ewcsreport1, spring.
  • Handle: RePEc:ewc:report:ewcsreport1
    as

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    File URL: http://www.eastwestcenter.org/fileadmin/stored/pdfs/SR010.pdf
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    References listed on IDEAS

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    1. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 975-1005, December.
    2. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
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    4. Manuel Trajtenberg & Adam B. Jaffe & Michael S. Fogarty, 2000. "Knowledge Spillovers and Patent Citations: Evidence from a Survey of Inventors," American Economic Review, American Economic Association, vol. 90(2), pages 215-218, May.
    5. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    6. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, January.
    7. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-174, February.
    8. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
    9. Pari Patel & Keith Pavitt, 1991. "Large Firms in the Production of the World’s Technology: An Important Case of “Non-Globalisation”," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 1-21, March.
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    Citations

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    Cited by:

    1. Necoechea-Mondragón, Hugo & Pineda-Domínguez, Daniel & Pérez-Reveles, Luz & Soto-Flores, Rocío, 2017. "Critical factors for participation in global innovation networks. Empirical evidence from the Mexican nanotechnology sector," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 293-312.
    2. repec:spr:scient:v:101:y:2014:i:1:d:10.1007_s11192-014-1351-2 is not listed on IDEAS
    3. Chen, Shin-Horng & Wen, Pei-Chang, 2016. "Post Catch-up with Market Cultivation and Product Servicizing: Case of Taiwan's Transportation Equipment Industries," AGI Working Paper Series 2016-16, Asian Growth Research Institute.
    4. Leonardo Costa Ribeiro & Márcia Siqueira Rapini & Leandro Alves Silva & Eduardo da Motta e Albuquerque, 2017. "Cross-border co-authorships in scientific articles and knowledge flows: implications for investigating an emerging international system of innovation," Textos para Discussão Cedeplar-UFMG 553, Cedeplar, Universidade Federal de Minas Gerais.

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